Even Before iPhone 6, Can Apple Inc. Post an iPhone Blowout This Quarter?

Apple could partially return to its glory days of growth this quarter, as one analyst is predicting some healthy iPhone upside. Heading into the iPhone 6 announcement, consumers are still snapping up current models.

Jun 10, 2014 at 6:00PM

Like most consumer electronics brands, Apple (NASDAQ:AAPL) generally hits a seasonal lull during the summer. iPhone unit sales are no different. However, Morgan Stanley analyst Katy Huberty believes Apple is still enjoying robust demand. Morgan Stanley's proprietary AlphaWise Smartphone Tracker, which in part uses Google Trends data to forecast demand, projects that Apple will sell 39 million iPhones in the quarter ended in June.

That would represent 25% year-over-year growth and mark reacceleration in iPhone unit sales. That figure is also above the current Street consensus of 35 million. AlphaWise similarly predicted upside in the previous quarter, forecasting sales of 41 million versus the Street expectation of 38 million. It proved closer to the mark as Apple reported almost 44 million in iPhone unit sales.

This is an interesting forecast since now is about the time that consumers begin delaying purchases in anticipation of new models, which are generally released in September. The iPhone 6 has an awful lot of hype, and is expected to be larger with a major redesign, but that hasn't held back demand much. It's also possible that expanded carrier partnerships are driving additional demand. 

Apple added China Mobile and Japan's NTT DoCoMo around the turn of the year. Those are the largest carriers in their respective markets, and all that pent-up demand takes time to satisfy.

In this segment of Tech Teardown, Erin Kennedy discusses Apple's quarter with Evan Niu, CFA.

(relevant segment begins at 3:25)

Leaked: Apple's next smart device (warning, it may shock you)
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Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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